Last month over 1,000 insurance professionals gathered at Chelsea Pier in New York City for the InsurTech New York Spring Conference. This event was a great opportunity to connect, network, take in thought leadership sessions, share best practices and learn more about the current state of the commercial insurance industry. The event featured innovative new startups to large multinational organizations. Representatives from brokers, carriers, InsurTechs, MGAs and more gathered together to discuss what is happening in our industry. Novidea was proud to sponsor, present and exhibit at the event.
Here are the top five trends we identified for InsurTech New York.
- Digitization Increases in Popularity: The growing number of companies developing ways for brokers, MGAs and carriers to digitize their operations. For decades the insurance industry has relied largely on paper documentation and spreadsheets. These often require repetitive manual workflows and are inefficient and error-prone. To help solve this problem many companies are coming up with ways to help turn physical assets into digital ones. As underwriters begin requiring more and more data to effectively cover and price insurance, the ability to quickly access information in a digital format is critical.
- Investors Still Interested in InsurTechs: There have been many reports that given the current economic situation there has been a slowdown in the amount of investment in the InsuTech space. While many indicators demonstrate that this is accurate, the conversations and presentations at InsurTech New York showcased that there is still strong interest in investing in InsurTechs. Representatives from the leading VC and PE firms such as MS&AD Ventures Inc, ManchesterStory, Avanta Ventures and Bessemer Venture Partners were in attendance and were busy talking to the exciting startups at the event. The biggest change in InsurTech investing is that terms may be different, valuations might be lower and due diligence will be more thorough, but there is still great interest from leading firms to continue to bet on InsurTech.
- The Number of MGAs Continues to Rise: MGAs have been on the rise for years. They connect the strength of established carriers with a network of trusted brokers through cutting edge technology. InsurTech New York featured dozens of different MGAs specializing in unique verticals to help deliver innovative products to the market. Many of the speaking sessions featured representatives from MGA discussing how they are helping carriers bring specialized products to the new areas.
- Delivering Better Customer Service with Embedded Insurance: For years insurers have been looking for ways to meet their customers’ insurance needs where they want them. Years ago, portals were the method carriers could reach their customers by allowing them to request quotes directly from their website. Now they are using InsurTech companies to reach their customers through embedded insurance. When you purchase airline tickets, reserve a hotel room, or buy an expensive electronic device, you are presented with an opportunity to insure the transaction. This is embedded insurance and it gives carriers an opportunity to meet their customers insurance needs, in real time. Many companies are helping insurers develop products and find ways to distribute insurance to their customers directly.
- Progressing the Industry with Specialization and Niche Insurance: It was only a few years ago that the idea of pet insurance became mainstream and now there are dozens of carriers writing billions of dollars in premiums helping people protect their pets. This trend has continued with more insurers specializing in unique solutions. Insurtech New York featured a number of companies that focus on very specific areas. Some of these include coverage for boats, perishable cargo, wildfire, climate change, tornadoes and many more. These companies are helping move the industry forward by developing new products and coverages that were often ignored or never existed.
Using the best technology is vital for navigating this high-price, low-margin insurance industry. When you’re ready to go digital, reach out to the Novidea team. We’d love to discuss how we can help inflation-proof your business.